MasterCard aims to consolidate retail banking loyalty

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By: Wise Marketer Staff |

Posted on November 22, 2006

MasterCard aims to consolidate retail banking loyalty

MasterCard Worldwide has announced a new rewards programme platform that aims to help banks better leverage their existing customer relationships, and increase customer loyalty based on the entire banking relationship rather than on specific cards or products.

The new relationship rewards programme was designed to reach new levels of personalisation through rewards that meet specific customer interests. It also enables banks to roll multiple lines of products into one rewards account, helping to broaden banking customer relationships.

Brand-building The relationship rewards programme from MasterCard Rewards Services will help banks to build loyalty programmes unique to their own brands, and to cross-sell retail banking and credit products. This is made possible by seamlessly scoring and tracking multiple products while managing reward fulfilment in a uniform way.

According to Patricia Preston, group head of debit product management for MasterCard Worldwide, "Financial institutions are looking for ways to enhance cross-sell and retention efforts, and a loyalty platform like MasterCard's Relationship Rewards is a critical element of that strategy. By offering relationship-based rewards, MasterCard will help banks develop programmes that are more relevant to the varied interests and preferences of their customers." Indeed, the company's own research has shown that consumers prefer to be recognised and rewarded for their entire relationship with a financial institution.

Early 2007 launch MasterCard will offer its new relationship rewards programmes beginning in early 2007. Banks will have the ability to customise their loyalty and reward programmes to any degree they want, and rewards can be earned on deposit or investment balances, the number of products held, transactional elements such as card purchases, online bill payment, direct deposit, as well as one-time promotional events such as a mortgage or HELOC application/approval.

Additionally, rewards from personal and small business products can be combined, allowing customers to keep a single rewards account through which they can take advantage of cash-back, travel, gift certificates, matched contributions, and experiential rewards.

Helping with the design Banks needing to build a business case for relationship rewards will also be able to take advantage of best practice-based financial modelling, competitive analysis, cross-selling, and diagnostic tools. For each bank, the programme design, marketing campaign planning, ongoing programme management, results tracking and analysis are other components of the MasterCard relationship rewards offering.

"MasterCard wants to help banks create true loyalty among their customers, creating a deeper connection to make real advocates, not just points-redeemers," commented Mark Shipley, group head of loyalty solutions worldwide with MasterCard Advisors.

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